Arithmetic Ability
Compound Interest

1 / 134

Q.

The difference between simple interest and compound interest of a certain sum of money at 20% per annum for 2 years is Rs. 56. Then the sum is :

View Answer

Correct choice: C

Explanation:

We know thatThe Difference between Compound Interest and Simple Interest for n years at R rate of interest is given by C.In − S.In = P[R/100]n Here n = 2 years, R = 20%, C.I - S.I = 56 56 = P[20/100]2=> P = 56 x (5)2=> P = 56 x 25=> P = Rs. 1400
1 / 134